Tokyo Market Summary: Nikkei Average rebound, nominal GDP increased by 5.7% in 23, growth since 1991, boosting prices

Top news
Nominal GDP increased by 5.7% in '23, growth since 1991, boosting prices
The 2023 gross domestic product (GDP) bulletin announced by the Cabinet Office on the 15th was a real 1.9% increase and a nominal 5.7% increase compared to the previous year. Price increases have spread, and the nominal growth rate has been high since plus 6.5% in 1991, when the effects of the bubble remain. The Japanese economy is moving towards a complete break from deflation.

Is the Bank of Japan accepting banknotes for the first time in 14 years and withholding super new bills a decline in deposits
The Bank of Japan announced on the 15th that the total amount of Bank of Japan notes (banknotes) accepted by the head office in 2023 exceeded the total amount paid and became “over accepted” of 460.2 billion yen. This is the first time in 14 years since 2009 that acceptance has been exceeded. As new banknotes are scheduled to be switched in July, there is a possibility that the spread of the movement to let go of “chest deposits” that lie dormant in household budgets has had an impact.

Mitsubishi UFJ Asset is the leader in fund inflows from investment trusts
When fund trends (estimated values) of additional stock investment trusts (excluding exchange-traded funds = ETF =) from domestic public offerings were aggregated by management company, the top fund inflow for January was Mitsubishi UFJ Asset Management, and funds of 614.7 billion yen, which greatly exceeded 204.6 billion yen in the previous month, flowed in. It has been at the top for 8 months in a row. It was also at the top of the 2023 annual inflow ranking.

EV Motors completes EV bus assembly plant in Kitakyushu
EV Motors Japan (Kitakyushu City) announced that the main part of Japan's first dedicated assembly plant for commercial electric vehicles (EVs) has been completed. First, inspection of bus vehicles imported from China and installation of destination displays, etc. will begin. After that, production facilities were also introduced, and they transitioned to assembly of domestically produced EV buses, and eventually they aim for an annual production of 1500 units.

Notable stocks
Sony G --- sharp decline, negative view of the downturn in the game business
$Sony Group(6758.JP)$has continued to decline drastically. Financial results for the 3rd quarter were announced the day before. Operating profit for the fiscal year ending October-12 was 463.3 billion yen, up 9.9% from the same period last year, reaching a point where it was slightly above the consensus of about 435 billion yen. The financial business has surpassed market expectations. Meanwhile, profits in the game business have declined more than expected, and it seems that movements that are viewed negatively are dominant.

Rakuten Group --- temporary stop high, more revisions and improvements than expected for the 10-12 fiscal year
$Rakuten Group(4755.JP)$Is a temporary stop high. Financial results for the fourth quarter of the fiscal year ending 23/12 were announced the day before, and non-GAAP operating profit and loss for the 10-12 fiscal year ended 10-12 was in deficit of 3.6 billion yen. According to market forecasts, it seems that there were many predictions of a deficit of 20 billion yen or more.

Renesas is sluggish and will acquire US software Altium for approximately 89 billion yen
$Renesas Electronics(6723.JP)$It has been a soft trend. At 7:30 a.m. on the 15th, it was announced that the US software company Altium would be acquired and made into a subsidiary. It is planned to acquire all shares of Altium in cash, and the policy is to complete the acquisition during the second half of this year. The total amount of acquisitions has risen to 9.1 billion Australian dollars (about 887.9 billion yen).

KDDI boosts base station output to make it easier to connect with 2 times the 5G area
$KDDI(9433.JP)$It was announced on the 15th that the coverage area of the high-speed communication standard “5G” will be expanded. From 2024, the output of base stations in the frequency band called “sub-6 (six),” which is mainstream in 5G, will be increased, and the coverage area will be doubled compared to fiscal year 23.

Sumitomo Heavy Industries -- Significant reduction in operating profit of 6% during the fiscal year, and stock buybacks were also implemented
$Sumitomo Heavy Industries(6302.JP)$is significantly higher. The company announced on the 14th that its consolidated operating profit forecast for the full fiscal year ending 24.12 is 70 billion yen (down 5.9% from the previous fiscal year).

Terumo increases production of endovascular treatment devices by 4.5 billion yen to build a new overseas factory
$Terumo(4543.JP)$It was announced on the 15th that it will build a new building at its Puerto Rico plant. The investment amount is 30 million dollars (about 4.5 billion yen), and it is scheduled to be completed in the summer of 2025. The production capacity of the hemostasis device “AngioSeal” used in endovascular treatment will be increased.

Nippon Steel acquires US Steel as Vice Chairman with Vice Chairman
$Nippon Steel(5401.JP)$On the 15th, it was announced that Vice President Mori Takahiro, who is in charge of overseas business, will become vice chairman and vice president on 4/1. This is the first time in 9 years that Nippon Steel has appointed a vice chairman. We will strengthen our position within the company as a special mission manager for large-scale overseas projects, including the acquisition of US Steel, a major US steel company.